Latest news with #USSteel
CNA
4 hours ago
- Business
- CNA
CNA938 Rewind - Done deal between Nippon Steel, US Steel ends 18-month saga
CNA938 Rewind Nippon Steel has closed its US$14.1 billion acquisition of US Steel, bringing an end to a bruising 18-month takeover battle that was embroiled in American politics for months until finally gaining support from US President Donald Trump. Andrea Heng and Susan Ng take a closer look at the terms and implications for the steel industry, and impending tariffs, with Professor Lim Tai Wei, Department of Business Administration, Soka University and Japan expert.
Qatar Tribune
7 hours ago
- Business
- Qatar Tribune
Nippon Steel-US Steel deal closes with United States safeguards
Agencies Nippon Steel completed its multi-billion-dollar acquisition of US Steel on Wednesday, granting rare veto-like power over strategic decisions to Washington with a 'golden share'. The announcement concludes a saga that began in December 2023, when Nippon Steel agreed to acquire the linchpin of American steelmaking for $14.9 billion. An outright buyout sparked bipartisan political opposition, including from President Donald Trump, who railed against the proposed deal throughout the 2024 presidential campaign. But last month he announced a pivot, branding the revamped venture—blocked by former president Joe Biden on security grounds—as a 'partnership' rather than a takeover. A national security agreement between the companies and the US government provides that approximately $11 billion in new investments will be made by 2028. And Washington's non-economic golden share allows it to appoint one independent director as well as granting consent rights for proposed capital budget cuts among other powers. Nippon Steel CEO Eiji Hashimoto said Thursday in Tokyo that this 'won't hinder activities that we hope to conduct.' 'The agreement is fully satisfactory to us, as it ensures the management freedom... essential for business investment,' Hashimoto told reporters. 'We intend to start implementing measures for revitalization and development as soon as possible,' he said, promising not to 'transfer jobs and production sites elsewhere.' It is 'only natural' that the US government would be concerned about the takeover of a symbolic company, which dates back to 1901, Hashimoto added. A source close to the matter said Nippon Steel had bought all common shares of US Steel, completing the merger. The deal creates the world's fourth biggest steelmaker—but Nippon Steel faces several big challenges, from trade tariffs to weak demand for steel products worldwide. Nippon Steel shares were up 2.4 percent Thursday afternoon, even as Tokyo's benchmark Nikkei index slumped 0.9 percent. Pennsylvania Senator Dave McCormick, a Republican, thanked Trump on X and called the outcome 'a massive victory for working families in the Mon Valley, our economy, our national security, and America's manufacturing future!' But the United Steelworkers (USW) union, which vigorously fought the deal, vowed to 'continue watching, holding Nippon to its commitments,' according to a statement. 'We will use the most powerful tool workers have against global corporations: collective bargaining.' Biden had blocked the transaction in early January, shortly before leaving office. He said that placing 'one of America's largest steel producers under foreign control' could 'create risk for our national security and our critical supply chains.' Besides agreeing to keep US Steel's Pittsburgh headquarters and to maintain US production, the national security agreement calls for a majority of US Steel's board to be US citizens, as are key leaders including the CEO. The 'golden share' does not entitle the US government to dividends, nor does it require Washington to make investments in the company. While the structure gives the government 'extraordinary' influence, the mechanism could be difficult to enforce in a downturn if Nippon fails to comply, said Atlantic Council senior fellow Sarah Bauerle Danzman.
Yahoo
9 hours ago
- Business
- Yahoo
Canada announces retaliatory measures on US steel, aluminum tariffs
Canadian Prime Minister Mark Carney announced retaliatory measures on U.S. steel and aluminum during a press conference on Thursday. "President Trump and I agreed to pursue negotiations towards a deal within the coming thirty days," Carney said. "Canada will adjust its existing counter tariffs on U.S. steel and aluminum products on the 21st of July — at the end of that thirty days. In other words, we're going to adjust them to levels consistent with the progress that's made at that point on the broader trading arrangements with the United States," Carney said.
The Hill
10 hours ago
- Business
- The Hill
US Steel, Nippon Steel finalize ‘historic partnership'
US Steel said Wednesday it finalized its merger with Japan's largest steelmaker, Nippon. President Trump lauded the acquisition as a partnership in which the U.S. would maintain a 'golden share' of profits with expanded investments in Pennsylvania, Indiana, Arkansas, Minnesota and Alabama. 'U. S. Steel will remain rooted in the United States and continue to call Pittsburgh home. Through our partnership with Nippon Steel, we are poised to grow better and bigger, with transformative investment, cutting-edge technology, and the creation of good-paying jobs across the United States,' U. S. Steel's CEO Dave Burritt said in a statement. Trump and former President Biden both spoke out against the merger on the 2024 campaign trail citing concerns for national security and global competition. Months after returning to the Oval, Trump approved the acquisition, ensuring it would spur job growth and boost U.S. manufacturing. The $15 million buyout was solidified under a National Security Agreement drafted by Trump. The provisions ensure that a sitting president or his designee will have consent rights over the transfer of production or jobs outside of the U.S., changing the company's name or headquarters and material acquisitions of competing businesses in the country. While the White House has lauded the deal, labor unions have shown fear that attention to work conditions and the broader objective of company operations will die down following the announcement of the merger. 'As the sale concludes, it seems likely that attention will dissipate. U.S. Steel's PR machine will power down, and the majority of elected officials will turn their attention elsewhere. However, our union will remain. We will continue watching, holding Nippon to its commitments,' United Steelworkers International President David McCall said in a statement. 'And we will use the most powerful tool workers have against global corporations: collective bargaining. Our current agreement expires in September 2026, and rest assured, if our job security, pensions, retiree health care or other hard-earned benefits are threatened, we are ready to respond with the full strength and solidarity of our membership.'
Yahoo
11 hours ago
- Business
- Yahoo
Cleveland-Cliffs (CLF) Dives 4% After Losing US Steel Bet
We recently published a list of 10 Stocks Take A Shocking Nosedive. Cleveland-Cliffs Inc. (NYSE:CLF) is one of the worst-performing stocks on Thursday. Cleveland-Cliffs dropped its share prices by 4.43 percent on Wednesday to end at $7.33 apiece as investors sold off positions following Nippon Steel's successful acquisition of US Steel Corp. It can be recalled that Cleveland-Cliffs Inc. (NYSE:CLF) repeatedly attempted to acquire US Steel since 2023 after former president Joe Biden blocked Nippon Steel's purchase plan over national security issues. However, even its proposal had been repeatedly rejected. President Donald Trump officially gave his green light for Nippon Steel's acquisition on condition that it will sign a national security agreement with the US government. Cleveland-Cliffs Inc. (NYSE:CLF) is a US-based steel and iron ore manufacturer based in Cleveland, Ohio, and which strongly supported Trump's imposition of tariffs on steel imports. A welder in a hardhat soldering steel plates to a blueprint plan. Duties on imported steel and aluminum products make domestic manufacturers such as Cleveland-Cliffs Inc. (NYSE:CLF) more appealing to customers as it may bolster demand for their products, support competitive pricing for locally-produced goods, and further reduce competition with international producers. While we acknowledge the potential of CLF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
